Focus Investing

[Chris M.]

I just read the quick article from @BenLeybovich titled Focus Investing on his website http://justaskbenwhy.com/ this afternoon and also listened to the BP Podcast with his interview (think it was Episode #6). Focus Investing for Ben is his term for "snow balling" one note from your portfolio with CF from other properties within your portfolio.

I am totally on board and understand the obvious reasons to "Focus" on one note or conversely to leverage CF and get another property etc... As Ben states clearly, "I plain don’t like a lot of equity. It’s useless. It does not pay for bread or medical – Cash Flow does all that."

Now my being a student at this time and not having purchased an investment property I am still not sure which direction I would go with if I had the luxury for multiple Cash Flows but that is another post.

What caught my attention though was this reply he had to Seth in the comments section: "It's not a good idea to own equity from liability stand-point – attracts bad attention". We all know about the legal reasons/protective measures to go to an LLC but the paradox of being "conservative" and paying off one mortgage in full but in reality putting all your legal exposure and hard earned Portfolio CF in one basket really made me take a step back from the Snowball/Focus camp.

Curious what others' thoughts are and my thanks to @BenLeybovich for winning a Gold Star today and literally getting me to stop in my tracks and think...

*****

Article that got me thinking is here ~> http://justaskbenwhy.com/focus-investing/#comments